Data and analytics software company Palantir is expected to fetch a market valuation of around $22 billion after it completes a public market debut planned for next week, The Wall Street Journal reported Friday, citing sources familiar with the matter.
The company has opted for a direct listing in lieu of a traditional IPO. Its bankers have reportedly told investors to expect shares to price for around $10 apiece. At that price point, Palantir would be valued above its recent valuations in private markets.
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That’s notable, per The Wall Street Journal, because of Palantir’s unusual and aggressive governance structure:
“The strong demand for the money-losing company’s stock is all the more remarkable given that its founders have put in place one of the most aggressive governance structures ever seen. The shares of Palantir’s three co-founders—billionaire investor Peter Thiel, Chief Executive Alex Karp and President Stephen Cohen—are structured so they could become more potent as the men sell down their stakes, according to securities filings. Through a unique feature of the voting structure, Mr. Cohen, for example, could still effectively control the company by owning just 0.5% of the shares.”
Founded in Palo Alto, California in 2003, the company recently moved its headquarters to Denver. It is one of the most heavily funded private, venture-backed companies, having raised at least $2.6 billion in known investment, per Crunchbase data.
Illustration: Li-Anne Dias